Striking Boeing workers reject 35% wage increase proposal.
Striking Boeing workers have rejected the airline’s new offer, which includes a 35% pay rise over four years.
The International Association of Machinists and Aerospace Workers (IAM) said 64% of its striking members voted against the proposed agreement.
More than 30,000 Boeing workers joined the walkout, which began on September 13, after the initial request was rejected.
It comes hours after Boeing boss Kelly Ortberg warned the company was at a “crossroads” as the company’s losses hit almost $6bn (£4.6bn).
“After 10 years of sacrifice, we still have reasons to make amends, and we hope to do so by resuming negotiations as soon as possible,” union representatives said in a statement.
“This is workplace democracy – and clear evidence that there are consequences when a company mistreats its employees year after year,” it added.
This is the second time that striking workers have rejected a proposed contract for a formal vote. The previous proposal was rejected last month by 95% of workers.
Previously, Mr. Ortberg, who took over the management in August, said that he was working hard to stabilize the company as it works to repair its reputation that has been affected by production and safety issues.
“This is a big ship that will take time to turn around, but once it turns around, it has the ability to become big again,” he said.
The latest crisis at Boeing erupted in January with the surprise explosion of part of its passenger jet.
Its space business also gained a reputation after its Starliner spacecraft they were forced to return to Earth without carrying astronauts.
This strike has created more problems, resulting in a significant drop in productivity.
Mr Ortberg said the company was “deeply in debt” and had let down customers with poor performance across the business.
Boeing’s commercial aircraft business reported an operating loss of $4bn in the past three months, while its defense division lost about $2.4bn.
“They obviously have a lot to recover from, both operationally and financially,” said Ben Toscanos of S&P Ratings.
“The first step will be to resolve the strike… so we’ll see how that goes,” he added.
Mr Ortberg said the company was in a strong position, with a backlog of around 5,400 orders for its aircraft.
But he warned investors that restarting the firm’s operations, whenever the strike ends, will be tricky.
“It’s more difficult to turn this on than to turn it off. So it’s important, very critical, that we do this right,” he said.
“We have a detailed return to work plan and I’m looking forward to getting everyone back on track and getting to work on that plan.”
The company announced plans earlier this month to cut about 10% of its workforce. Thousands of other workers have already been partially out of work due to the strike, which has also hit suppliers.
Mr Ortberg told investors that his first priority was a “fundamental culture change”.
“We must avoid the spread of problems and work together better to identify, fix and understand the cause,” he said.
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